Brazil’s economy shrank more than expected in May according to the central bank’s main gauge of activity, as President Luiz Inacio Lula da Silva’s government advances key reforms and investors bet on rate cuts.
The bank’s economic activity index, a proxy for gross domestic product, fell 2% from the prior month, more than all forecasts in a Bloomberg survey that had a -0.10% median estimate. From a year ago, the gauge increased 2.15%, according to data published on Monday.
Read More : Brazil’s Economic Activity Plunges, Raising Expectations for Key Rate Cut